Industry : Structural Constraints

Structural Constraints A correspondent writes:
THIS is the season for coming forth with suggestions and advice to the finance minister, whose second budget is round the corner. The economy is stagnant and there is no sign of a recovery on the horizon. Exports are slothful and though foreign exchange reserves have risen, they can evaporate as easily as they have accumulated as much of these reserves are due to NRI investment. Though the rate of growth has received a prop from some sleightof- hand by the CSO, its tenuous base is likely to be exposed sooner or later. In the meantime the fiscal deficit is ballooning and no one knows how to rein it.